CERU Vs. STO PONNANI

JUDGEMENT

(1.) The 1st petitioner is a registered dealer doing business in arecanuts within the jurisdiction of the respondent the Sales Tax Officer, Ponnani. For the year 1960-61, the 1st petitioner submitted his return to the respondent and he passed an order of assessment on 18-9-1961 assessing him on a turnover of Rs. 2,32,000/- and odd.

(2.) On a verification of the Bank transactions of the petitioners it was found that the petitioners jointly and severally had received large amounts from Banks towards despatch of arecanuts for sale and that these amounts were not included in the accounts produced before the Sales Tax Officer. Hence a notice dated 14-2-1964 was issued to the 2nd petitioner calling upon him to show cause why he should not be assessed for the years 1960-61 and 1961-62. Another notice dated 18-2-1964 was issued to the 1st petitioner calling upon him to show cause within 7 days of the receipt of the notice why his assessment for the year 1960-61 should not be reopened and revised as indicated in the notice. It is not necessary to state the further proceedings taken by the Department except to say that the respondent issued notices dated 30 1 1965 to the petitioners proposing to assess them on escaped turnover and calling for objections, if any. Exts. P1 and P2 are those notices. Thereafter a joint notice marked Ext. P3 was issued to them stating the above mentioned facts.

(3.) The petitioner's contention is that the notices issued to them are without jurisdiction and illegal for the reason that the period for making an assessment under R.33 of the General Sales Tax R.1950, has expired on 31-3-65, and that the provisions of S.19 of the Kerala General Sales tax Act, hereinafter referred to as the Act, prescribing a period of four years for making an assessment of escaped turnover are not available to the Department in the case. The Act came into force in 1 4 1963. The material portion of S.19 of the Act, reads: